Appearing on a panel at a conference sponsored by the Swiss National Bank in Zurich, Powell said the role of U.S. monetary policy in driving global financial conditions and capital flows "is often overstated." The pickup in both global growth and commodity prices are also factors, he said. Still, the Fed should remain alert to "risk sentiment" going forward, Powell said.

For its part, the Fed would try to avoid market disruptions by communicating its policy strategy "as clearly and transparently as possible," he said. And so far, so good. "Fed policy normalization has proceeded without disruption to financial markets, and market participants' expectations for policy seem reasonably well aligned with policymakers' expectations...suggesting that markets should not be surprised by our actions if the economy evolves in line with expectations," the Fed chairman said.